2 Answers
2

Your domain at GoDaddy points to the IP address at Blogger where your files that make up your site are located

Locations
Name - GoDaddy
Files (HTML)* - Blogger

*The DNS record is indeed at GoDaddy The HTML, settings, and much of the post-contents are indeed stored on Blogger/Google's servers. But images are stored in Picasa-web-albums (unless you've chosen to put them elsehwere - in which case you'll know where they are). Videos are stored in Google Videos (unless you've chosen to host them in YouTube, ditto previous comment). And other files need to be in whatever other place you chose to store them, because Blogger doesn't provide file-hosting for them. - MaryC.fromNZ

The information under Locatins is not quite correct: The DNS record is indeed at GoDaddy The HTML, settings, and much of the post-conents are indeed stored on Blogger/Google's servers. But images are stored in Picasa-web-albums (unless you've chosen to put them elsehwere - in which case you'll know where they are). Videos are stored in Google Videos (unless you've chosen to host them in YouTube, ditto previous comment). And other files need to be in whatever other place you chose to store them, because Blogger doesn't provide file-hosting for them.
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MaryC.fromNZSep 10 '12 at 14:44

It actually depends on the DNS records you have setup for your domain bought.
You domain now points to a specific IP, what you need to make sure is that your domain records send the visitor to your blog.

All you need to do is to add a record that says that the domain www.myblog.com is at blogname.blogspot.com. So when the user types www.myblog.com he will be redirected to blogname.blogspot.com.